The principle of freedoms in EU

Updated: 12 Apr 2016 / Published: 20 Aug 2015 / Number of views: 1837

Functioning of the European Union is based on four freedoms guaranteed by the agreement between all Member States. The consequence of the application of those freedoms is a range of entitlements for entrepreneurs and EU citizens, which facilitate their free movement and pursuing of activities in any of the Member States. In short, each Member State of the EU in terms of granted rights and obligations must treat foreigner - a national of another EU country — as one of its own citizens. This means that competences and qualifications acquired in one EU country must be accepted in the others.

There are following freedoms:

free movement of persons - as an EU citizen you have the right to travel, live, work and take up an economic activity anywhere in the Community without the need for visas and permits, this freedom also covers your family members;

free movement of goods - goods lawfully placed into any Member State may be without additional charges (duties) and other administrative constraints moved across the Union;

free movement of services – you can set up business activity in another Member State and provide services on the basis of cross-border principle ( from a country of registration of business, usually without additional requirements);

free movement of capital – as an EU citizen you can transfer profits from one Member State to another and invest and acquire any material and financial assets without any obstacles.

The result of four freedoms for an entrepreneur is:

the possibility to set up a business activity in another EU country (without meeting any additional requirements),

the possibility to provide services in another EU country without the obligation to register business activity in this country,